Holbrook Area Potash ProjectAmerican West Potash

Fall 2011

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Agenda

Who we are Why we are here Potash Overview Holbrook: Competitive Advantages American West Potash Next Steps A Snap Shot of Potash Processing

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Holbrook: Significant Strategic Advantages Solid historical geologic analysis and modeling Significant potash reserve at shallow depths Likely to be conventionally mined, then complete with

solution mining No oil and gas conflict Close to large agricultural and industrial markets: Southwest,

California, Mexico, Ports for international shipments Potential for low cost construction and mining Favorable business climate; political stability Favorable weather

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Potash

What is it? Where is it found World statistics

Tons used World trade Domestic activity

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Potash Projects and Reserves

Canada Russia Other – Argentina, Peru, Congo, Thailand US

Carlsbad North Dakota Holbrook

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Potash Economics

Source:  Infomine.com

Key agricultural nutrient World shortage of 

potash, limited global reserves

Increasing global demand

Increasing sales prices and improved technology now make Arizona project viable

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American West Potash Partnership

Karlsson Group – over two years of work in the Holbrook Basin

Prospect Global – extensive experience in natural resource projects, financial and technical expertise

Pat Avery – Executive Project Manager Developed strategic and progress plans, have made

significant progress

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Mining, Manufacturing and Fertilizer Experience Potash: Led last six projects in the US

Expansion of three underground mines and surface plants (New Mexico, Utah)

Design and engineering of opening an abandoned mine (NM)

Two major solution mining projects (NM, UT) Manage all aspects of fertilizer design, engineering,

construction, production, supply chain and sales Nitrogen complexes Phosphate mining, phos acid plants, gold, silver,

copper, clay, silica- Id, UT, NV, Wy, CO,AZ, WA, Or

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Accomplishments Leasehold accumulation

42 state sections, approx. 27,000 acres 8 private sections- surface plant Completed acquisition for 100 private sections of mineral leases 150 sections combined

- Working with North Rim Exploration, top potash consulting firm

Compiled, digitized and evaluated historical data Completed 43-101 Resource Report Prepared preliminary design, budget and permitting plan for full

2.0MM product ton facility Cooperative efforts in the area

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North Rim Geologic Study

Mapped all historical information

Compared well data to Rauzi Report

Begin mine plan

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NI 43-10 Plan

2D seismic lineWell location

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Next Steps – Future Work

Continue with area wide field work Seismic- Began 2/1/2011 Drilling- May 1- August 15 Geologic modeling

Complete an NI 43-101- Done- October 15, 2011.- Results are very positive and merit future work.- Large, long life mine resource

Develop mine plan, feasibility study and long term budget

Finalize project viability

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State and Local Benefits

Job Creation Consulting and permitting: 1-1.5 years Construction: 1 year, 500 – 800 jobs Mining/Production: 300 – 400 jobs

State royalty revenue (hundreds of millions) State and county ad valorem tax revenue Sales tax revenue (hundreds of millions) Underground mining reduces visual and

environmental impact

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Key Conclusions

Significant land position- 150 sections, 95,000 acres- potentially 900mm tons of potash

Cooperative efforts with adjacent land owners Significant resource potential and revenue stream

Ann.production: 2mm tpy-40-50 years of mining Favorable region and conditions: reserves, depth,

climate, markets, and business environment

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A Snap Shot of Potash Mining and Processing Underground Mine Surface Processing Plant: floatation, separation, drying Product Prep: sizing, granulation Product Storage and Rail/Truck Load Out Infrastructure: electrical, water, steam, roads, rail No hazardous steps, processes or chemicals

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Underground Mining

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Underground Mining

Continuous miners cut the face Ore is moved by conveyors to production shaft

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Surface Processing

Ore comes to the surface and is concentrated from 8-20% ore to 60-62%- salable product

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Surface Process

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Floatation Building

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Product

Holbrook will produce red standard and granular

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Potash Facility – A good industrial partner and neighbor

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Questions?